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L27 MCS in Service Ind

L27 MCS in Service Ind

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Published by api-3820619

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Published by: api-3820619 on Oct 18, 2008
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03/18/2014

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10/17/08
10/17/08
1
1
hmahesh45@yahoo.com; VIM Pune
hmahesh45@yahoo.com; VIM Pune
MCS in Service Organization \u2013
MCS in Service Organization \u2013
Service Industry Differs from Mfg. Industry in
terms of -
\u2022 Inventory building - cannot store the product
\u2022 Different resources requirements - labor
intensive
\u2022 Quality of product \u2013 difficult to control (Relative
concept and
Professional Dependent)
\u2022 Pricing of product \u2013 No sound cost base
\u2022 Multi-unit organization setup \u2013 fast food chain

\u201cCharacteristics of Service Industry Determines
the nature of MCS to be followed and strategy
to be used to implement the said MCS.\u201d

10/17/08
10/17/08
2
2
hmahesh45@yahoo.com; VIM Pune
hmahesh45@yahoo.com; VIM Pune
MCS in Service Organization \u2013
MCS in Service Organization \u2013
Characteristics of Service Industry
Characteristics of Service Industry
\u2022Very few tangible assets\ue000 ROI may be
meaningless
\u2022Special class of labor\ue000 seeks more autonomy in
working.

\u2022Input and output measurement is difficult\ue000
difficult to arrive at effectiveness and efficiency of a
professional.

\u2022Usually of small size\ue000 Viability of elaborate MCS is
in question.
\u2022Marketing of the services is usually informal\ue000 may
lead to problem in arriving at inputs of revenues.

\u2022Cost of services is of flexible nature such as
traveling expenses, communication expenses
therefore building standards is difficult process.

10/17/08
10/17/08
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hmahesh45@yahoo.com; VIM Pune
hmahesh45@yahoo.com; VIM Pune
MCS in Service Organization \u2013
MCS in Service Organization \u2013
Issues Involved: -
Issues Involved: -
1. Pricing \u2013 Usually linked with time spent.
2. Transfer Pricing
(When service providing unit is defined as Profit center)
3. Strategic Planning and Budgeting \u2013 usually long
range staffing plan.
4. Control of operations \u2013 Crux is in scheduling the
professional time.
Hours Billed
5. Billed time ratio =--------------------------
Professional Hours Available

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